Question

Keeping an accurate check register

Answer 1

Answer:

It is very important to keep an accurate check register.

Explanation:

Keeping an accurate check register is vital so that you'll always be aware of how much money you have available to spend.  Also, if you are interested in making sure that you are not going over your planned budget, the register provides a living picture of your expenses regularly.  

When you make errors in your register and think you have more money in your account, you might write a check that bounces.  A check 'bounces' when there are not sufficient funds in your account to support the check.  If you write a check for $44 and you have only $34 in your account, the check bounces.  A bounced check might result in the bank charging additional fees.  Also, the bank might not honor the check and they will send it back to the merchant.  This can lead to embarrassment for you and the merchant's unwillingness to do business with you again.  

A bounced check may negatively impact your future credit if the merchant or bank reports you to the credit bureau.  The credit bureau will then take note of the insufficient funds notice and make that information available to potential loan agencies.  This means that if you go to buy a car or other substantial investment, the loan agency viewing your credit report might consider that you either do not have sufficient funds or that you are not financially responsible.  

Answer 2

You would keep an accurate register